money cash medium_of_exchange currency





Cash, Cash and more Cash









by Martha Harris Myron




Cash, Cash, and More Cash, it isn't called pounds, shillings and pence anymore, but it is still cash.


The Medium of Exchange for goods and services wasn't always cash. Our very ancient ancestors gifted, bartered and shared their resources.  The barter system was certainly not the instantaneous global free trading capital market system of today. Thus, it was difficult to set values for a normal barter transaction - say ten (10) feet of stone walls built for five(5) gallons of hard apple cider and half a deer. What if the stone wall collapsed sooner rather than later, or the cider instead of a lushly alcoholically aromatic brew had turned to vinegar? 

What recourse did you have? Neither part of the barter was returnable to the 'store'.

The ancestors moved toward trading (as migration increased) although that was an imperfect system as well - trading shells for meat on the hoof, how did you deal with shells breaking or the meat being, well, more than a bit off? Earliest recorded production of Cold hard cash evolved in issuance of precious metal coins, then printed facenotes on linen, paper.

Where is the Value? The value thing was still there how does one set a fair price on what one wants to buy and what someone else wants to sell. Trouble is no one individual assigns exactly the same value of one thing  in terms of another thing. Value (like beauty) is in the eye of the beholder, paraphrase from Plato.

$ Forms of Cash today. Coins, paper, intangible investments such as money markets, Treasury bonds, credit cards, etc.

The free trade capitalist market ultimately came into play; not only could you buy something immediately, but into the future as well by contracting for later delivery. Cash today is represented more by electronic interchange than the physical exchange of paper and coins. Will we see a complete absence of physical cash in our lifetimes? Will cash be represented by the ownership of a computer or other portable electronic device that allow us to access our cash? Will cash be numbers on paper bankd statements alone, viewed electronically, instead of the paper or coins itself?

Cash purchasing power and inflation. Domestic (soft) cash versus hard currency cash - paper and coins.  Hyperinflation and devaluations of cash in a domestic economy drives the hoarding of hard cash and the growth of underground economies. The value of a country's money is tied to the stability of, and the confidence in that economy.


Inedible paper. When economic times become uncertain, paper money value is hard to determine due to inflationary pressures and demand for real resources (food). When individuals have no cash of value, people revert to the black market and barter system once again.

The Underground (so-called black market because illicit trade takes place in the dark) is trade, goods and services that are not part of the official economy of a country. The vast array of activities may include legal activities where taxes are not paid, or illegal activities, such as drug dealing. Wikipedia


Cash – you need it. How do you get it, especially in a recession. How much do you need? When should you save, or invest it?  Who is going to pay, if you cannot (the role of government)?


Cash earning power, Cash has to earn its way, otherwise it is cash moldering under the mattressHow is cash handled by banks, and by us? Can cash in and of itself, earn income?  When you deposit your cash in a bank, it earns interest and is also loaned out by your bank to others. Is a money market fund cash?


The CASH MONEY Multiplier. It ramps up or down – with the success (or shrinking) of an economy.

Foreign currency. Daily, Bermuda residents face monetary conversion challenges and a costly transaction tax. Other countries represent the hard currency validity that we need. Since Bermuda dollars are just pretty paper outside the island reefs and the economy has no natural resources for sale, residents need US dollars, Euros, Pounds, and Canadian dollars (the North Atlantic Quadrangle) to buy food, goods, and services from abroad. Foreign businesses, foreign workers, and foreign investors bring hard foreign currency to our shores, our banks, our businesses, our hotels, our rental units, and our personal households.


The Ubiquitous Budget. Everyone: individuals, businesses, governments, need a budget in order to plan ahead, have some cash to spare, and savngs for the proverbial rainy day.





© Copyright 2000 - 2014 Martha Harris Myron Bermuda  All Rights Reserved


What is CASH?

  • Coins, paper on street
  • Bank deposits
  • Money market funds
  • Cash in lieu? Barter, trading
  • Financial institutions



CASH  - for Wants and needs

  • Purchasing power and inflation
  • Earning power
  • Can you handle a budget?


  • Why bother? Because the little things add up!
  • Getting your foodsworth – is it food or fantasy?



THE TEN THINGS you should do

before you invest your cash.



CASH Money Multiplier

  • Country Cash Value is backed by what exactly?
  • GDP, GNP
  • Government budget management



CROSS Border Complexity

  • Foreign exchange
  • Offshore accounts and reporting
  • KYC
  • Anti-Money Laundering




THE BERMUDA Monetary System